USD/CAD has broken the 13-day moving average (DMA) at 1.2868. Nevertheless, economists at Credit Suisse remain biased higher over the medium-term.

Decline viewed as a temporary correction only

“We expect this decline to be only a temporary weakness, leading us to remain with our broader positive view whilst above the 55-DMA average at 1.2701 and to anticipate an eventual turn back higher toward the recent high at 1.3076.” 

“Resistance is seen at 1.2858 initially, next at 1.2932 and then at 1.2973/81. Above here would open the door to reach the recent high at 1.3076, with a break above here needed to reinforce the medium-term turn higher.”